The newly created Centre Investment Society (CIS) is reaping big rewards, both in terms of experiential learning and financial gains.
The CIS manages a real $100,000 portfolio on behalf of the College under the direction of Assistant Professor of Economics Jason Rastovski. Their portfolio saw a 10 percent return in 10 months in 2013-14, beating their benchmark.
Founders Bryce Miller and Clark Gairing, both seniors, gave a presentation to members of Centre’s Board of Trustees in 2013 in support of the creation of the society, after which the board’s investment committee unanimously voted to allot them $100,000 from the College’s endowment to invest.
The bylaws for CIS are clear-cut: no more than 5 percent can be invested in any individual security (stock or bond), and investment proposals are generated by research teams headed by a portfolio manager. Miller and Gairing, the directors, oversee the portfolio managers, the executive meetings and the general session meetings, where all buy/sell decisions are made.
CIS members want to encourage all students with an interest in investments or managing their own finances to participate, regardless of skill level.
“I think the results speak for themselves in terms of our success, but we’ve also learned a great deal,” Miller says. “Next year we hope to increase awareness of our society and tap more of the many talented students at this school for participation. Our website should be up by the end of the summer, which will allow greater visibility and give us more opportunities to promote ourselves.”
Rising senior Ryan Arey, who will co-direct the program during the 2014-15 academic year, says, “we want to see as many students as possible participate in this great opportunity no matter their level of experience with investments. The directors and portfolio managers are here to teach any interested student as much as possible about the industry and investment analysis.
“The society will also host several industry professionals next year to share insights, give advice and create important industry connections,” he adds. “We encourage every student to take advantage of this.”
by Cindy Long